Private Equity Council statement on tax legislation approved by House of Representatives
The Private Equity Council issued the following statement on legislation approved today by the House of Representatives that would change the tax treatment of “carried interest” investment income for private equity firms and other partnerships.
“The relatively small margin by which the House today passed legislation raising taxes on private equity, venture capital and real estate partnerships demonstrates widespread concern about this new investment tax.
“With this vote, many lawmakers indicated that they are worried that the legislation could put at risk the economic benefits delivered by private equity and other investment firms that drive innovation, create jobs and strengthen American companies in the face of increasing global competition.
“The Private Equity council will continue its efforts to persuade the Senate that the House bill could dampen economic growth at a time of an unsettled economy and gyrating financial markets.
“We respect Chairman Rangel’s efforts to pursue significant tax reform. While we disagree with him on this bill, we hope to maintain a dialogue about the importance of balancing tax fairness, fiscal responsibility and entrepreneurial investment incentives.”
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